How To Market Time The Fiscal Cliff

What is truly ironic to me is that the emotion advisors are afraid to face (occasionally selling an asset at a loss to meet a spending goal) is infrequent anyway when you tax efficiently manage retirement distributions like we do for hundreds of clients every day. We use retirement spending goals to get the portfolio closer to the targeted allocation by recognizing long term gains in assets that generally are over weighted anyway, and we have no problems generating highly tax efficient retirement distributions that equate to a 4-5% yield in dollar terms.

There is a lot to fear about the fiscal cliff. The risk of trying to market time it, though, does not objectively appear to be worth the price. Simply put, the best way to market time the fiscal cliff is to not market time it at all.

IMPORTANT DISCLOSURES: Examples and concepts used in this educational post are intended for illustrative, educational purposes only. Nothing in this post should be construed as investment advice regarding any particular investments for any particular individual circumstance and you should consult with your own financial advisor regarding your personal situation. There is no representation or guarantee of specific results, explicit or implied. In addition, the information based on historical time periods cited or other information generated by Wealthcare Capital Management ® do not reflect our actual investment results and are not guarantees of future results. All returns cited are based on gross performance before advisory and transaction fees but net of fund or ETF expense ratios. Illustrative data used in this educational post provided by sources believed to be reliable but not verified independently by Wealthcare Capital Management®.

Wealthcare Capital Management is a Registered Investment Adviser and its SEC Form Part 2A is available online.

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